Zeta Network Group, a Nasdaq-listed company (ZNB), announced on October 15, 2025, that it has successfully raised approximately $230 million through a private investment in public equity (PIPE) financing. The funds were secured through the sale of Class A ordinary shares and warrants, with investors making payments in Bitcoin (BTC) and SolvBTC, a Bitcoin-backed token issued by Solv Protocol.
The deal involves the sale of Class A ordinary shares and warrants at a combined offering price of $1.70 per share. Each warrant allows the purchaser to buy one Class A ordinary share at an exercise price of $2.55. The company's stock experienced significant volatility following the announcement, with an initial surge followed by a decline. By mid-morning on October 15th, ZNB had fallen to $1.8910, representing a 5.91% single-day loss. However, Investing.com reported that the stock jumped 6.5% in premarket trading on Wednesday.
Zeta Network intends to use the financing to strengthen its balance sheet and hold Bitcoin-based, yield-generating products, with the goal of enhancing its net asset value. Patrick Ngan, Chief Investment Officer at Zeta Network Group, stated that integrating SolvBTC into their treasury would enhance financial resilience by combining Bitcoin's scarcity with sustainable yield. The company views this transaction as a strategic balance-sheet allocation that reinforces its long-term financial position.
The private placement demonstrates Zeta Network's confidence in Bitcoin's long-term value and its adoption of a counter-cyclical treasury management approach. The agreement is part of ZNB's long-term strategy to enhance its digital asset treasury model and sees SolvBTC as a tool to strengthen its balance sheet and ensure liquidity.
SolvBTC is fully collateralized 1:1 with Bitcoin held under regulated custody and verified through on-chain proof-of-reserves. Zeta Network's transaction represents an initial step in a broader collaboration with Solv Protocol, establishing a framework for how tokenized Bitcoin instruments can participate in regulated capital markets. The transaction is expected to close on October 16, 2025.
